This paper studies how globalization affects corporate tax planning strategies of U.S. manufacturing firms. Using U.S. granting China Permanent Normal Trade Relations (PNTR) as a quasi-natural experiment, we find a significant increase in tax avoidance for firms facing higher exposure to Chinese...

The 2018 U.S.-China trade war has spurred wide-spread debates about the effects of Chinese imports on U.S. society. We examine the effect of United States' conferral of Permanent Normal Trade Relations (PNTR) on China — a policy that eliminates the uncertainty of future tariff increases for...